RRSP Home Buyer’s Plan

The Home Buyer’s Plan (HBP) is a government program that allows home buyers to withdraw up to $25,000 from their Registered Retirement Saving’s Plan (RRSP) to put towards buying or building a new home.

Before you can withdraw funds, you have to be entered into a written agreement that specifies whether you will be buying or building your new home. You also must occupy this space no later than a year after buying or building this new home.

To take advantage of this program you have to be considered a first-time buyer. You are not a first-time home buyer if you (or you and your spouse) has owned a home which you have occupied as your principal place of residence in the past 5 years.

Once those conditions are met each person can withdraw up to $25,000 tax-free from their RRSP for a new home. Couples, including common-law, can withdraw up to $50,000. You will not pay income tax on these amounts as long as these funds will be repaid into an RRSP in the future.

Existing homeowners can also use this program to purchase an accessible home or a home for a disabled dependent relative. The intended individual must qualify for the Disability Tax Credit (DTC) and this home must be more accessible or better suited to the care of this individual.

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David Eichorn Realty Ltd., Brokerage

Featured Testimonial

Thank you again for the wonderful job you did selling our home and helping us find and buy a newhome. We used your services in the past and were so delighted that we had no question where to turn when we wanted to look for a new home this time. Your vast knowledge about which houses were available in the area; and your uncanny ability to make the right match between buyer and seller are all truly phenomenal. As well, your assistance with all the details and your being available "24/6" were also very helpful to us during a very busy time when rapid decision making was so important. Thank you so much for everything. Working with you was really a pleasure.